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Block grant proposal to change how state gets Medicaid funds

NASHVILLE (AP) — A proposal to cover half the Medicaid costs in Tennessee with federal block grants would be the first of its kind in the nation if approved.

The Tennessean reports Gov. Bill Lee plans to reveal a draft of his proposal this month, ahead of a Nov. 20 deadline for submission to the federal Centers for Medicare & Medicaid Services.

The Trump administration has promoted block grants as a way to decrease federal Medicaid costs. If approved, Tennessee would get $4 billion annually. If TennCare enrollment decreases, the state could use leftover money on other services. If it increases, the state would get some more money for each additional patient.

Many patient advocates and hospital groups say the plan would lead to less care and bad outcomes for the chronically ill.